Teach your daughter about money
JOHANNESBURG – Give your daughters much more in life, equip them with financial knowledge and skills.
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As a woman, your mother may not have spoken to you about money, but it is important to talk to your daughter about money to increase her knowledge about a subject that will unavoidably be an integral part of her life.
Head of savings and investments at Standard Bank, Nolene Parboo, said a girl should be taught how to develop a culture of saving, the difference between saving and investing, how to budget and manage her money, career choices, entrepreneurship and the value of education.
Parboo explained, “Mothers should prepare their daughters to be financially and emotionally independent. Ensuring that our daughters are capable of standing on their own feet starts well before they earn their first salary. Parents exert the most influence on their children’s financial habits, so the groundwork starts at home, not at school or work.”
She said when a child was young, the basics were the same for boys and girls, but daughters needed to be taught to spot stereotyping and to deflect lingering prejudices about how women ‘should’ act in a relationship.
Parboo added that when a woman entered a relationship with her investments and finances in order, she was more likely to demand financial responsibility from her partner. “In addition, she will, in all likelihood, be more discerning about a potential partner. While financial status should not be the determining factor in a relationship, choosing a person who has the same beliefs and ethics concerning money is vital for long-lasting happiness and stability,”she said.
Another issue that needed to be addressed is career and motherhood. Parboo said, “Even if a husband can carry the household on one salary so his wife can stay at home and raise the children, staying out of the job market for five or 10 years can put a woman at risk, reducing her future work prospects.
“Divorce is only one possibility, retrenchment, disability and illness can all lead to the cash flow drying up, so gaining, maintaining and enhancing skills and education should be one of a woman’s top priorities, before and after she is married.”
All women are at risk of being financially compromised, so a woman must prepare for financial independence.
Parboo highlight some scenarios:
- What if my husband is suddenly disabled or killed? Would I know where to look for the will, insurance policies or investment accounts?
- Does my husband have adequate life cover?
- Does he have disability insurance and when does it take effect?
- What would I do if he does not have life insurance, and what if he leaves behind a mountain of debt?
- Do I know for sure that the retirement plan is on track, or does it even exist?
- How much will we need to retire?
Parboo added that the answers to these questions would go a long way to help your daughter devise a plan for her life and finances. By addressing all of the above issues with your daughter, you will help her navigate her financial world, improve her life choices, and perhaps you, too, might choose to make some changes.